Pakistan’s Trade Deficit Surges Over \$6 Billion in July–August 2025 Amid Rising Imports
ISLAMABAD: Pakistan’s trade deficit widened significantly in the first two months of the ongoing fiscal year 2025–26, crossing \$6 billion, a 29.63% increase compared to \$4.66 billion during the same period last year. The surge was driven by a sharp rise in imports, according to a report released by the Pakistan Bureau of Statistics (PBS).
Total imports rose by 14.53% to \$11 billion in July–August 2025. Food imports reached \$1.46 billion, up by \$397 million, with higher spending on milk, butter, cream, dry fruits, spices, pulses, soybeans, and palm oil. Palm oil alone accounted for \$640 million in import spending.
Mobile phone imports more than doubled, costing \$300 million in two months compared to \$143.7 million last year. Similarly, imports of cars, buses, and motorcycles also doubled, pushing the transport import bill beyond \$625 million. Machinery imports rose 22.56% to \$1.7 billion.
The textile sector’s imports increased 7.49% to \$1 billion, while agricultural equipment and chemicals rose 4.58% to \$1.75 billion. Imports of metals, including iron, steel, and aluminum, also crossed \$1 billion.
On the other hand, tea imports fell by 5.67% and sugar imports dropped 19.48%. Petroleum imports decreased by 4.65%, standing at \$2.53 billion during the same period.
The PBS report highlights that the surge in non-essential imports, particularly luxury items and electronics, has put additional pressure on the country’s trade balance.
